Platforms' limited product range failing advisers

Platforms' limited product range failing advisers

Platforms are failing to provide the full range of products advisers need, according to latest research.

The research from CoreData, which spoke to 1,000 advisers, indicated that a third of respondents, 33.7 per cent, cited annuities and income drawdown as the products they most want to see on platforms.

Full self-invested personal pensions (Sipps) was nominated by 25.5 per cent of respondents and discretionary fund management services was selected by 17.3 per cent of advisers as the product they most wanted to see on their platform.   

Craig Phillips, head of international at Core Data Research, said: “Income drawdown, in particular, has grown in popularity since the advent of pension freedoms.

“With annuities, Sipps and other complex pension products also featuring at the top of the platform product rankings, our research shows advisers attach a lot of importance on the ability of platforms to offer a range of retirement options.”

Mr Phillips added the desire for platforms to offer discretionary investment management services reflects growing adviser demand for outsourced solutions.

The survey also examined the top priorities for advisers when choosing which platform to use.

Charges were cited by 32.8 per cent of advisers as the most important consideration, followed by ease of use, which was given priority by 28 per cent of respondents.

The survey showed 15 per cent of advisers likely to add one or more platform to their business in the coming year.

Martin Bamford, managing director at Informed Financial Planning, said: “In an ideal world, we would be able to use one platform to access the widest possible range of financial products from different providers across the whole of the market.

"I would personally love to be able to manage my entire financial life through one platform; everything from cash savings and payment cards through to insurance policies, investments and pensions.”

He added: “As an adviser, it would dramatically reduce the time we spend on administration if we could access everything in one place and have consistent standards for applications, data gathering, research and reporting.

"A platform which became a genuine hub for the entire market of financial products would quickly win my support.”